Banking
Showing 465–480 of 600 results
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Do you think all financial statements are created equal?
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 624
Abstract: When sitting down to review a customer’s financial statements, banks shouldn’t forget to consider the differences between public and private companies, the customer’s incorporation type, and the accounting method used. This article discusses the details of these factors to help banks take into account their borrowers’ differences.
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ALLL best practices – Pay attention to qualitative factors
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 492
Abstract: Staying on top of the allowance for loan and lease losses (ALLL) is critical for banks, especially in the current economy. If examiners find that an ALLL is underfunded, they may downgrade the bank’s CAMEL rating, require it to increase capital levels or take other remedial action. One of the biggest challenges in calculating the ALLL is assessing the impact of qualitative, or “environmental,” factors that cause a bank’s loss estimates to deviate from its historical loss experience. This article looks at interagency guidance that provides a useful outline for this analysis, but also discusses best practices proposed by two examiners.
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4 tips for boosting noninterest income
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 936
Abstract: Noninterest income is declining for many banks. There are many reasons for this, including general economic conditions and regulatory changes, such as opt-in requirements for overdraft protection fees and limitations on credit card fees and debit card interchange fees. This article discusses four strategies for increasing noninterest income: improving collection of current fees, getting to know the competition, putting a value on banking relationships, and buying life insurance on the lives of key employees. A sidebar discusses the circumstances in which tax-advantaged bank-owned life insurance (BOLI) benefits are available.
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Back to basics – S corporation vs. C corporation
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 466
Abstract: Entity choice is a strategic decision that affects bank customers’ legal liability, tax obligations and financial reporting. S corporations and C corporations are two popular choices for private business ownership. This article looks at some differences lenders should keep in mind when considering these corporations.
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Financial restatements – What do they really tell you?
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 661
Abstract: Lenders should be concerned about the accuracy of the accounting information in borrowers’ financial statements. But there may be “honest” reasons why borrowers need to correct their financial statements, such as when complex accounting principles are misinterpreted. This article examines some of those factors and shows how to minimize dependence on bad numbers.
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Get a grip on internal controls
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 918
Abstract: Understanding borrowers’ control systems is an important part of loan due diligence. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) lists five components of internal controls. This article discusses them, along with what to look for in management letters. Specifically, a sidebar points out that such letters must include “material weaknesses” and “significant deficiencies” in internal controls unearthed during audit procedures.
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Beware of these top tax traps – IRS strategic plan sheds light on potential audit risks
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 740
Abstract: Under the IRS’s five-year strategic plan, Tier I activities — credits or deductions involving a large number of taxpayers in many industries, a significant dollar amount or high visibility — are specific high-risk transactions that IRS auditors must evaluate if a borrower is audited for any reason. This article looks at some possible consequences of an IRS audit and, proactively, some IRS hot buttons that lenders should watch for on their borrowers’ financial statements and tax returns.
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BANK Wire – Federal Reserve sets rule on appraiser independence
Winter 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 387
Abstract: This issue’s “BANK Wire” discusses a Federal Reserve Board interim final rule on appraiser independence that expands on the Dodd-Frank Wall Street Reform and Consumer Protection Act. It also explains why community banks seeking new sources of capital should consider applying to the Small Business Lending Fund.
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Small business lending – Watch out for inflated receivables
Winter 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 573
Abstract: In desperate attempts to secure loans in today’s conservative lending environment, some small businesses are artificially inflating their receivables on financial statements by postponing bad debt write-offs, stretching out revenue recognition cutoffs or even recording bogus sales. In other instances, small business staffs are stretched so thin that inadvertent errors in recording receivables are being made. Fortunately, bankers who conduct extra due diligence on receivables can sort fiction from fact and errors from accuracy. This article offers tips on how to do so.
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How does your bank gauge loan quality?
Winter 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 429
Abstract: The real estate and financial crisis highlights the need for lender quality control (QC) programs. Recognizing this risk, Fannie Mae recently beefed up its QC policies, and Freddie Mac may follow suit. Banks that sell loans to the secondary market are required to have a QC program. But even those that don’t should consider following Fannie Mae’s guidelines to help ensure the quality of their loans. This article looks at the new requirements.
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Accounting for financial instruments – Proposal foretells major impact on banks
Winter 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1019
Abstract: The Financial Accounting Standards Board (FASB) is considering proposed changes in accounting for financial instruments and plans to adopt final standards by June 2011. If adopted, the proposal — which calls for most financial instruments to be measured at fair value — would have a significant impact on the way banks account for loans, deposits and investments. It also would change the way banks measure credit impairment and calculate loan loss reserves. This article discusses some of the details, while a sidebar looks at FASB’s new credit risk and loan loss disclosure requirements.
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Market Niche Insider – Health clubs – It’s survival of the fittest
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: It’s no surprise that the recession has taken its toll on the fitness industry. Health club spending is an easy target for households cutting back. Here are some ways to diagnose the health of fitness borrowers.
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8 questions to consider in M&A deals
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 595
Abstract: With priced-right sales opportunities ripe for the picking, some customers may be tempted to acquire another business as the economy mends. Others — those feeling the strain of the prolonged downturn — may be considering a merger with another, stronger business. In either scenario, a bank may be asked to provide financing. Here are some questions a lender should consider when sorting the potential winners from losers in a merger or acquisition deal.
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Dot your “i’s,” cross your “t’s” – Contract compliance reviews can expose gold
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 628
Abstract: Anyone who has ever found $50 in their pants pocket knows the thrill of an unexpected windfall. So unexpectedly finding thousands of dollars would be especially exciting. And that’s what many business owners discover after they sift through the details of their various contracts. Borrowers with more money in their pockets typically borrow less frivolously and default less often. A strong handle on contract compliance also decreases borrowers’ exposure to breach of contract claims. This article looks at how contract compliance reviews might make borrowers more liquid and, therefore, less risky.
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Are your clients growing too fast?
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 892
Abstract: In a turbulent economy it’s common for borrowers to stop growing — or start declining. But a lucky few have the opposite problem: They’re growing too fast. And experienced lenders know that unchecked growth can be just as detrimental to debt service as no growth at all. Featured is the tale of a rapid-growth borrower that got into trouble and how that situation was remedied, as well as some perils and warning signals of out-of-control growth. A sidebar discusses how the sustainable growth rate gives borrowers a guideline for reasonable growth expectations.
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Market Niche Insider – Professional practice pointers
October / November 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: Lawyers, accountants and other professional services firms occasionally need financing to purchase equipment or fund seasonal shortfalls — just like any business. But they differ from retailers, contractors and manufacturers in noteworthy ways. This article shows why it’s important for lenders to examine a professional firm’s accounting method, succession plan and earnings trends.